Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg
Speaker 1: Daybreak for Thursday, June sixteenth, two. Coming up this hour,
Speaker 1: the post fed rally fades as US future slump recession
Speaker 1: fears return following the biggest interest rate increase since n
Speaker 1: It's the Bank of England's turn to increase the indust
Speaker 1: race and Elon Musk is set to address Twitter employees
Speaker 1: for the first time. The gunman who killed black people
Speaker 1: in a racist attack the Buffalo faces federal hate crimes charges,
Speaker 1: plus hearings resumed today on the January sixth Capitol Riot.
Speaker 1: I'm Michael Blar More ahead, I'm John Stash Howard sports
Speaker 1: another win for the Yankees, a loss for the Mets,
Speaker 1: Colorado on the Stanley Cup bottle Opener, and the US
Speaker 1: Open golf agains today. That's all strained ahead on Bloomberg
Speaker 1: Daybreak on Bloomberg Eliving Free on New York Bloomberg nine
Speaker 1: nine one, Washington d C, Bloomberg one O six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Syrius XM one nineteen and
Speaker 1: around the world. Old on Bloomberg Radio dot Com and
Speaker 1: by the Bloomberg Business app. Good morning. I'm Nathan Hagar
Speaker 1: and I'm John Tucker. Bloomberg day Break being brought to
Speaker 1: you by Informatica. In the Cloud, your data has the
Speaker 1: power to be extraordinary. Managed data across any location of
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Speaker 1: dot Com. Futures are slumping this morning. We're coming up
Speaker 1: to six o one on Wall Street, and we check
Speaker 1: the markets every fifteen minutes during the trading day. On
Speaker 1: Bloomberg SMP futures are down eighty four point, Staff futures
Speaker 1: down five dred forty six. Nasdaq futures are lower by
Speaker 1: three hundred twelve points. The tenure Treasury is onto decline
Speaker 1: down one in eight thirty seconds. The yield three point
Speaker 1: for three percent yield on the two year three point
Speaker 1: three seven percent John Well, Nathan. The reversal in futures
Speaker 1: comes after a rally yesterday following their latest decision for
Speaker 1: the Fed J. Powell engineering the biggest US interest rate
Speaker 1: increase in twenty eight years to fight inflation. Markets responded
Speaker 1: the rally that halted a five day ten percent rollity
Speaker 1: in the sp We at the FED understand the hardship
Speaker 1: that high inflation is causing. We're strongly committed to bringing
Speaker 1: inflation back down, and we're moving expeditiously to do so.
Speaker 1: We have both the tools we need and the resolve
Speaker 1: that it will take to restore price stability on behalf
Speaker 1: of American families and businesses. J Pal and Company raised
Speaker 1: rates by seventy basis points and lived with the target
Speaker 1: range for the federal funds rate to one and a
Speaker 1: half to one and three quarters percent. Former Richmond Fed
Speaker 1: president Jeffrey Lacker says more is needed. I think it's
Speaker 1: gonna have to go to about five and a half
Speaker 1: or six percent. That's my own sense, and that's based
Speaker 1: on just the historical record. Uh that indicates that real
Speaker 1: interest rates, inflation adjusted short term policy rates have to
Speaker 1: get above zero in order to have any chance of
Speaker 1: frustraining inflation. Former Fed Bank of Richmond president Jeffrey Lacker,
Speaker 1: who says the Fed should have raised rates last year. Well,
Speaker 1: this rate high John now has many on Wall Street
Speaker 1: forecasting a recession for the US economy. We caught up
Speaker 1: with Guggenheim Chief investment officers Scott minored, there's a chance
Speaker 1: that we are already in a recession. And so if
Speaker 1: if we are in a recession or we're close to
Speaker 1: a recession, and the FED pushes on this more and
Speaker 1: then we find that that all of a sudden we
Speaker 1: have a decline in asset prices like stocks did in
Speaker 1: eight seven, then uh, if the Fed reversus course, they're
Speaker 1: gonna look like they're week on inflation. So this this
Speaker 1: is a very very tough situation that we're maneuvering. Googgenheim
Speaker 1: Chief investment Officers Scott Miner says cracks are forming in
Speaker 1: the credit world. He says the worst is probably not
Speaker 1: over and after the Fed, now it's the Bank of
Speaker 1: England's decision. Investors in economists are betting the UK Central
Speaker 1: Bank would deliver a fifth straight hike later this morning,
Speaker 1: raising the base rate by twenty five basis points to
Speaker 1: a thirteen year high of one point to five percent,
Speaker 1: But former Bank of Angland viavnor Mark Garney says that
Speaker 1: he thinks policymakers are folding behind real world events. I
Speaker 1: think what's clear as central bankers need to catch up
Speaker 1: to their economies. They've you know, they've been behind the curves.
Speaker 1: They've acknowledged this um and they need to start to
Speaker 1: get interest rates uh above inflation effectively, or at least
Speaker 1: perspective inflation inflation expectation. Mark Arney stepped down from the
Speaker 1: Central Bank of twenty He is now a vice chair
Speaker 1: at Brookfield Asset Management. We have another interest rate decision
Speaker 1: in Europe to tell you about, John. The Swiss National
Speaker 1: Bank unexpectedly raised its interest rates for the first time
Speaker 1: since two thousand seven. Policymakers ompted to join the global
Speaker 1: bandwagon of monetary tightening, lifting the policy rate by fifty
Speaker 1: basis points to negative zero point to and staying in Europe.
Speaker 1: Natural gas prices jumping after Russia has stepped up a
Speaker 1: new energy war, cutting supplies to Europe's top buyers. Let's
Speaker 1: get more from Bloomberg Energy reporter Stephen Sovsnavsky. This is
Speaker 1: a big deal, and this is like the worst case
Speaker 1: scenario that that traders were expecting in Europe. Absolutely, it
Speaker 1: is um you know, for for weeks, for months, you know,
Speaker 1: when this war broke out, the fear was Russia was
Speaker 1: going to curb supply to customers, and they curb to
Speaker 1: some customers. They curb to Poland, to Bulgaria, they curbed
Speaker 1: to these countries. But they're not major buyers. Germany is
Speaker 1: a major buyer. And this pipeline they've the North Stream
Speaker 1: one that cut supply my well, the European benchmark rose
Speaker 1: as much as twelve percent a day after surging by
Speaker 1: in the previous two sessions. Thank Here in the US, John,
Speaker 1: the White House says President Biden is willing to use
Speaker 1: emergency measures to ramp up gasoline output. Bloomberg said, Baxter
Speaker 1: has the story. This is the same Cold War era
Speaker 1: law he invoked to increase production of baby formula and
Speaker 1: bolster solar manufacturing. Biden saying his administration is prepared to
Speaker 1: use all reasonable government tools to increase refinery capacity. Meanwhile,
Speaker 1: the White House spokesman Karen Jean Pierre says the oil
Speaker 1: companies need to step up, calling on them to do
Speaker 1: the right thing, to be patriots here uh and not
Speaker 1: to use the war as an excuse for higher costs
Speaker 1: leading to higher profits. In San Francisco, I'm at Baxter
Speaker 1: Bloomberg day breaking Thanks that incorporated news, A big day
Speaker 1: for Twitter and Elon Musk. Let's get the latest live
Speaker 1: from Bloomberg's Rena Young Morning. John. Elon Musk is addressing
Speaker 1: Twitter employees for the first time today since agreeing to
Speaker 1: buy the company for forty four billion dollars. At the
Speaker 1: virtual meeting, Musk will take questions directly from employees, many
Speaker 1: of who have not been happy with him lately. Meantime,
Speaker 1: Twitter CEO recently announced a series of cost cutting measures,
Speaker 1: including canceling the company wide retreat that was scheduled to
Speaker 1: happen in January twenty three and a hiring freeze. Live
Speaker 1: in New York, I'm Rernita Young Bloomberg Day Break, Thanks Nita,
Speaker 1: and a big name in the cosmetic style is filing
Speaker 1: for bankruptcy. Revlon is applying for Chapter eleven protection. The company,
Speaker 1: owned by billionaire Ron Perlman, has been unable to manage
Speaker 1: it's heavy debtload. Revlin got its start selling nail Polishy
Speaker 1: in the throes of the Great Depression. Promins Holding Company
Speaker 1: took control in five after a bitter takeover funded with
Speaker 1: junk debt raised by Michael Milken. Futures are falling this morning.
Speaker 1: Straight ahead, we have your latest local headlines and a
Speaker 1: check of sports. This is Bloomberg all right, Thanks Nathan
Speaker 1: six Oh settled on Wall Street time to bring in
Speaker 1: Michael Barr to find out what else is going on
Speaker 1: in New York and around the world. John, thank you
Speaker 1: very much, sir. The gunman who killed ten black people
Speaker 1: in a racist attack at a Buffalo supermarket has been
Speaker 1: charged with federal hate crimes that could potentially carry a
Speaker 1: death penalty the Department of Justice, as eighteen year old
Speaker 1: Peyton Gendren told investigators his goal was to kill as
Speaker 1: many black people as possible. Attorney General Merritt Garland visited
Speaker 1: at the Top supermarket where the shooting happened. Hate fueled
Speaker 1: acts of violence terrorized not only the individuals who are
Speaker 1: all attacked, but entire communities. Hate brings media devastation, and
Speaker 1: it inflicts lasting fear. Attorney General Garland placed flowers at
Speaker 1: a memorial and men with families. Lawyers for British socialite
Speaker 1: Galaine Maxwell say she should face no more than four
Speaker 1: to five years in prison at sentencing later this month
Speaker 1: for her role in financier Jeffrey Epstein's sex abuse of
Speaker 1: teenage girls. Epstein took his own life in August of
Speaker 1: nineteen while awaiting a sex trafficking trial in Manhattan. The
Speaker 1: role of former Vice President Mike Pence will be a
Speaker 1: major focus of Today's congressional hearing on last year's Capital riot,
Speaker 1: the January six committee will focus on the pressure put
Speaker 1: on Pence that day and includes efforts to keep Pence
Speaker 1: from certifying President Biden's election victory. The House January six
Speaker 1: elect Committee released video showing Republican Georgia Representative Buried louder
Speaker 1: Milk leading constituents on a tour around the Capitol complex
Speaker 1: on January f The committee claimed one of the participants
Speaker 1: in the two were marched to the Capitol the next
Speaker 1: day and may detail threats against members of Congress. New
Speaker 1: York Democratic Congress Remember Alexandria Ocassio Cortez and the fact
Speaker 1: that he was inviting and letting people in that he
Speaker 1: did not know when the capital was close to the public.
Speaker 1: The fact that he was giving a tour at all
Speaker 1: is extremely concerned. Representative Occassio Cortez spoke to ABC. Congressman
Speaker 1: Loudermulk has denied any wrongdoing. COVID vaccines for infants and
Speaker 1: Toddler's from MODERNA and Visor one support from a panel
Speaker 1: of US regulatory advisors. The Committee advising the FDA voted
Speaker 1: unanimously in favor of Viser's three dose vaccine for youngsters
Speaker 1: ages six months through four years. It also gave a
Speaker 1: strong endorsement to Moderna's two Dose for children six months
Speaker 1: through five years. Global News twenty four hours a day
Speaker 1: on air end on Bloomberg Quick Tank, powered by more
Speaker 1: than twenty seven hundred journalists analysts more than a hundred
Speaker 1: twenty countries. I'm like Labar, this is Bloomberg, John Michael,
Speaker 1: thank you. Sound sixteen of walls free, best time for
Speaker 1: the Bloomberg Sports Update. Here's John Stasher, All right, John Scott.
Speaker 1: Often you see a team be thirty games over five
Speaker 1: hundred and mid June. But the Yankees are forty six
Speaker 1: and sixteen at stadium and Aaron Judge Holmes run first,
Speaker 1: hitting the twenty five. That's seven more than anyone else
Speaker 1: in the majors. Three run shot for Kyle Agashi Yoka
Speaker 1: fifth and he hadn't homer all year until he hit
Speaker 1: two just this past Sunday, and now he's got a third.
Speaker 1: Yanks be Table Bay four to three. Nest Court has
Speaker 1: to win the other's safe for Clay Homes in City
Speaker 1: Field night to forget for the Mets, who lost in Milwaukee,
Speaker 1: tend to two in Atlanta one again. The Braves are
Speaker 1: at fourteen and oh in June and they're now four
Speaker 1: games behind the Mets. Second straight night of near no
Speaker 1: hitter that Dodgers Tyler Anderson lost it when Shoeotani hit
Speaker 1: a triple with one out in the ninth inning overtime
Speaker 1: to start Stanley Cup Final. Colorado Blue a three one league,
Speaker 1: but got a goal from Andre Barakowski minute twenty three
Speaker 1: and oh t for a four three game one victory
Speaker 1: over tamp of May. To night in Boston, it's Game
Speaker 1: six of the NBA Finals. Either Golden State wins the
Speaker 1: championship or it's back to San Francisco for a game seven.
Speaker 1: And what a sports day in Boston because this morning
Speaker 1: they too off to begin the US Open Country Club
Speaker 1: of Brookline, of course, that first hosted they open in
Speaker 1: nineteen thirteen with a victory by Brookline native Francis. We
Speaker 1: met Roy McElroy looking forward to plane in historic court.
Speaker 1: That is what's so good about golf is the history,
Speaker 1: in the tradition and these stories. Um. You know the
Speaker 1: fact that he grew up just off the seventeen goal here, um,
Speaker 1: and we're still talking about it to this day. Over
Speaker 1: a hundred years old, Like that's so cool. That's the
Speaker 1: great thing about this sport. McIlroy has got an early
Speaker 1: tea time, so does Defenny Champ. John Ram updates throughout
Speaker 1: the attorney here on Bloombrig Radio. John Stanshard bloom Brig Sports,
Speaker 1: John all right, Thanks John. Ahead of the cash open
Speaker 1: on Wall Street. After yesterday's rally, Futures this morning firmly
Speaker 1: in the red Dalla futures down four hundred nineties seven points,
Speaker 1: SMP eveny futures seventy six points. Lower futures down two
Speaker 1: hundred seventy seven points. This is Daybreak, Bloomberg Daybreak Bronck
Speaker 1: you by Hofstra University's Frank gez Arm School of Business,
Speaker 1: top running to online NBA program with a real world foundation.
Speaker 1: Learn more at Hofster dot e d u slash go
Speaker 1: grad Markets, headlines and breaking news twenty four hours a day,
Speaker 1: at Bloomberg dot Com, The Bloomberg Business at and at
Speaker 1: Bloomberg Quick Tape. He's a Bloomberg Business Lash. I'm Nathan Hager.
Speaker 1: The stock rally that followed the FED supersized rate high
Speaker 1: yesterday has evaporated as recession fears take over This market.
Speaker 1: We check the numbers every fifteen minutes during the trading day.
Speaker 1: On Bloomberg, STP futures down down seventy eight point. STOUT
Speaker 1: futures down five eleven. Nasdaq futures are lower by two
Speaker 1: d ninety points. The tenure Treasury is down one in
Speaker 1: eight thirty seconds. The yield three point or three percent
Speaker 1: of fifteen basis points two year yield three point pree
Speaker 1: five percent. Dimex screwed is down two tenths percent at
Speaker 1: a hundred fifteens a barrel. Comex called up two tenths
Speaker 1: percent at eighteen seventy announced. The euro one point zero
Speaker 1: four zero six against the dollar in agin is at
Speaker 1: one thirty three point one five. That's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Michael Nathan, thank you very much. The
Speaker 1: January six Committee is plunging into Donald Trump's efforts to
Speaker 1: pressure Vice President Mike Pence to reject the electoral count.
Speaker 1: At today's hearing, testimony is expected from retired federal judge
Speaker 1: Michael Luddick, who called the plan incorrect at every turn.
Speaker 1: In baseball, the red hot Yankees one again. The Mats
Speaker 1: lost along with the Nationals, Orioles and Giants. The Red
Speaker 1: Sox beat the A's Game one in the NHL Final.
Speaker 1: The Avalanche beat the Lightning in overtime. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalists and analyst
Speaker 1: more than a hundred twenty countries. I'm Michael Barr. This
Speaker 1: is Bloomberg, John Michael, thank you, six Ena Wall Street.
Speaker 1: We are live from the Bloomberg INTERACTI Broker's Studios. This
Speaker 1: is Bloomberg daybreak Feed. Reserved chair Jerome Powell seems to
Speaker 1: have acknowledged that reigning and inflation may result in a recession.
Speaker 1: Let's get more now against today's Fed meaning. Allen Sander Mortgang,
Speaker 1: Stanley's chief of U S E Commerce, joins us this morning.
Speaker 1: A pleasure, good to talk to Allen. Um, how far
Speaker 1: into restrictive territory is the FED willing to go at
Speaker 1: this point? Ellen Sender, can you hear us? Can? All right?
Speaker 1: Sorry having I have a little trouble with the line there, Ellen,
Speaker 1: But let me just repeat the question for you. How
Speaker 1: far into a restrictive territory. Is this FED willing to
Speaker 1: go at this point? Yes, I think the message from
Speaker 1: Pale yesterday was not quite the will do whatever it
Speaker 1: takes message that we were expecting. But to acknowledge that
Speaker 1: recession could be an outcome is really realistic. I mean,
Speaker 1: you know, we've not had to deal with accelerating inflation
Speaker 1: in a very long time. Before the Great Moderation, it
Speaker 1: was pretty standard that an acceleration inflation led recessions because
Speaker 1: of the FED response. And if that's what it takes
Speaker 1: to get inflation down. If the Dead's not able to
Speaker 1: slow the economy enough or overdoes it, it can't course
Speaker 1: correct fast enough, well, then recession is the obvious uh
Speaker 1: in game there. I don't think investors should be that
Speaker 1: scared of it though. Okay, but the upper bound somewhere
Speaker 1: three and a quarter to three fifty. Uh, that has moved.
Speaker 1: But is that enough at this point? Do you think? Yeah,
Speaker 1: you know, we'll see. I mean, the market was pricing
Speaker 1: an even higher peak rate and the SAD funds rate
Speaker 1: before this meeting, but some of that is the investors
Speaker 1: have had to put a greater weight on the possibility
Speaker 1: of procession so the FED can go it high as
Speaker 1: the FED wants to go, but it preaches the ecmmune
Speaker 1: recession and has to back out some of those rate hikes.
Speaker 1: And I think that's what we're seeing in terms of investors.
Speaker 1: Assuming the Feds may be able to only go as
Speaker 1: high as three and a half percent, I think with
Speaker 1: the path of inflation that we envisioned, the FED is
Speaker 1: going to have to go higher than that. UH and
Speaker 1: Charepel is very confident that he is the leader to
Speaker 1: be nimble enough to do that course correction, similar as
Speaker 1: something that they did in Twinning eight team. They pivoted
Speaker 1: very quickly when they saw liquidity troubles and the global
Speaker 1: slowdown UM, and they were able to UH stabilize economic conditions. Unfortunately,
Speaker 1: COVID hit, but you can't test how long those conditions
Speaker 1: might have been stable. But what we like to call,
Speaker 1: you know, UM recession is really opportunistic disinflation because when
Speaker 1: the economy is in a downturn, it tends to take
Speaker 1: steam off of inflation. It has that gravitational pool, and
Speaker 1: so if the FED can't do it alone from taking
Speaker 1: rates into restricted territory, they'll have to go even further UM.
Speaker 1: And a recession is a risk they're willing to take. Right,
Speaker 1: Is this the inflation simply demand driven? How complicated is
Speaker 1: the fix and doesn't really test UH of FED policy? Yeah?
Speaker 1: So I think John, we're past the point of of
Speaker 1: worrying if it's demand or supply driven. I mean, I'm
Speaker 1: I'm in the camp that it's both. That You've got
Speaker 1: UH in even more acute lack of goods and availability
Speaker 1: of labor at a time when we have a lot
Speaker 1: of tip of demand in the in the country now
Speaker 1: it's pink of demand for services and travel and leisure
Speaker 1: and hospitality and enjoying ourselves. Um. But but you know,
Speaker 1: we have to get past that and just say, look,
Speaker 1: whatever the supplied destructions are, whatever is creating higher inflation,
Speaker 1: the FED needs to force demands lower in the economy
Speaker 1: to align with that, to align with tighter supply and
Speaker 1: bring demand down. So it just means that they have
Speaker 1: a bigger job to do, UH to do here. So
Speaker 1: what's going to happen on the employment front? Well, on
Speaker 1: the employment for jobs have to slow, I mean not
Speaker 1: in the near term. I think all the indicators are
Speaker 1: that employers are still hiring. My concern is that what
Speaker 1: we're hearing from our companies is that we have filled
Speaker 1: the need to have jobs and we're going to close
Speaker 1: out the nice to have jobs. And I think we're
Speaker 1: really going to see that in the fourth quarter. It's
Speaker 1: gonna look like the job market has much more slack
Speaker 1: in it um than the SAID has assumed. UM. If
Speaker 1: that is the case, then the SAID may recognize that
Speaker 1: and not have to take rates um as far because
Speaker 1: it's really that slack in the labor markets that they're
Speaker 1: looking for. We need to slow the economy to take
Speaker 1: some pressure off of the labor market and raise the
Speaker 1: unemployment rate. That's that's the ugly truth of it. I've
Speaker 1: seen a number of comparisons to the vulgar era. Are
Speaker 1: those comparisons valid? I think in terms of the message
Speaker 1: of doing whatever it takes. In terms of the urgency
Speaker 1: UH and UH the intolerance for sustain higher levels of
Speaker 1: inflation that is absolutely bulker like area UM having to
Speaker 1: take rates high enough to get the economy into deep
Speaker 1: de profession I don't believe that's the case. We also
Speaker 1: don't have a wage price spiral. We're actually seeing things
Speaker 1: in liked market work like they should. Retail. We've seen
Speaker 1: a surgeon restaurants. We've seen the surgeon applications. Wage pressures
Speaker 1: are coming off in that sector. As we get more
Speaker 1: people back to work. Things are working like they should,
Speaker 1: They're just not working quickly. Allen always a pleasure. Ellen
Speaker 1: Center Market, Stanley's chief US economists with us this morning.
Speaker 1: Jaffy yesterday's rally. It is a risk off for the moments.
Speaker 1: Dalla futures right now five hundred forty three points lower,
Speaker 1: the S and B in many futures down to eighty five.
Speaker 1: Nasday features three hundred and fifteen points lower ten year
Speaker 1: yield right now three forty three. That is a fourteen
Speaker 1: basis points of the This morning, you're listening to the
Speaker 1: Bloomberg day Break Bloomberg Weather from mediologists Rob Carolin Partlet
Speaker 1: mostly cloudy, chance of a showering thunderstorm behind today, Mostly
Speaker 1: cloudy tonight, lows dipping to around seventy degrees. This is
Speaker 1: Bloomberg Markets, headlines and breaking news twenty four hours a
Speaker 1: day at Bloomberg dot com for the Bloomberg Business at
Speaker 1: and at Bloomberg Quick Tape is a Bloomberg Business lash.
Speaker 1: I'm Nathan Hagar. Well, so much for the Post fed
Speaker 1: rally futures are diving this morning. We go live to
Speaker 1: the First Word Breaking news desk for today's morning call.
Speaker 1: Here's Bill Maloney. Good morning, Bill, Hey, good morning Nathan.
Speaker 1: That's right. US futures are plunging right now, with DOWN
Speaker 1: futures down six hundred points says He's drop, and nasdeck
Speaker 1: futures are lower by three huntrewy four the US ten
Speaker 1: Ye know that three point for three percent, Gold is
Speaker 1: down eleven, oil is in the red, and Bitcoin is
Speaker 1: down by another two point seven percent. Hong Kong fell
Speaker 1: two point two percent overnight, while Europe markets are also
Speaker 1: in the red, led by three percent losses in Italy
Speaker 1: and note the Swiss National Bank surprise markets with its
Speaker 1: first interest rate hike in fifteen years. Back in the US,
Speaker 1: on the economic Frinday thirty initial jobs claims, Housing starts,
Speaker 1: and Philly fed Regarding earnings, look for Kroger and Jabil
Speaker 1: to report in the pre market. In other news, Tessela
Speaker 1: increased prices across its lineup and Revlon filed for chapter
Speaker 1: eleven wrapping things up. Auto Zonner was raised to overweight
Speaker 1: at Morgan Stanley. Boeing was upgraded rats City Group Live
Speaker 1: from the first Breaking News Daskam Bill Maloney, Nathan Okay, Bill,
Speaker 1: thanks you get live breaking news over your Bloomberg type
Speaker 1: squawk on the terminal. S qu a go is how
Speaker 1: you do it? That's the Bloomberg Business Flash. Now here's
Speaker 1: Michael Barr with more on what's going on around the world. Michael,
Speaker 1: thank you very much. Nathan. The House Committee and investigating
Speaker 1: the January Riot is holding its third public hearing today.
Speaker 1: The panel is expected to focus on threats against former
Speaker 1: Vice President Pence. Less than two weeks after restarting production,
Speaker 1: Abbot's troubled infant formula plan in Michigan is now being
Speaker 1: forced to shut back down again. Torrential storms cause power
Speaker 1: outages and flooded parts of their facility. In baseball, the
Speaker 1: Yankees one, the Mets lost, along with the Nationals, Orioles
Speaker 1: and Giants. The Red Sox beat the A's in Game
Speaker 1: one of the NHL Final. The Avalanche beat the Lightning
Speaker 1: and overtime. Thus Celtics will try to stay alive tonight
Speaker 1: in Game six of the NBA Finals. The Warriors could
Speaker 1: win it all tonight. In Boston, Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than journalists and analysts and more than a
Speaker 1: hundred twenty countries. Michael Barr and this is Bloomberg, Nathan,
Speaker 1: Thank you, Michael. It is sixty nine on Wall Street.
Speaker 1: Let's turn out to news in science and technology. The
Speaker 1: Bloomberg n j I T STEM Report is brought to
Speaker 1: you by New Jersey institut To to Technology, offering New
Speaker 1: Jersey's first undergraduate degree in fintech and j I T
Speaker 1: is Future in the Making, tech driven, finance focused. Learn
Speaker 1: more at n j I T dot E d U
Speaker 1: slash Fintech and now Here's what's making news and science, technology, engineering,
Speaker 1: and math. Shanghai will conduct mass COVID testing throughout the
Speaker 1: entire city every weekend through the end of July. A
Speaker 1: temporary lockdown will also be imposed on any residential complex
Speaker 1: where COVID cases detected. Workers at supermarkets, small's, restaurants, and
Speaker 1: other public facing businesses in Shanghai will be tested now
Speaker 1: every day. The California Supreme Court has left intact a
Speaker 1: ruling that allows customers to sue Amazon for failing to
Speaker 1: warn buyers that some products itsels may contain hazardous substances.
Speaker 1: Such as mercury. The court denied a request by Amazon's
Speaker 1: lawyers to review a lower ruling that said Amazon violated
Speaker 1: the state's Proposition sixty five, that the law requires companies
Speaker 1: to warn consumers about products they make or sell that
Speaker 1: contain chemicals known to cause cancer, reproductive harm, or birth
Speaker 1: defa and Tesla is raising prices across its line up.
Speaker 1: The electric car maker and other global vehicle makers continue
Speaker 1: to grapple with surging costs for raw materials. Electrac is
Speaker 1: reporting that Tesla lifted the price of the long range
Speaker 1: Model three by dollars to just under fifty eight grand.
Speaker 1: The longer range Model X dual motor all wheel drive
Speaker 1: was bumped up six thousand dollars to a sticker price
Speaker 1: of almost one one thousand dollars. And that is the
Speaker 1: Bloomberg and j I T Stem report John Nathan tex
Speaker 1: A Lot, we are live for the Bloomberg Interactor Brokers
Speaker 1: Studios where it's sixty one Wall Street. That means it's
Speaker 1: time to check what's going on at d C. And
Speaker 1: some of the top stories in our nation's capital include
Speaker 1: the FED triggered recession may cost President by the second term,
Speaker 1: President by the open it using Cold War era laws
Speaker 1: to ramp up gasoline output, and former Vice President Pants
Speaker 1: aids to testify the false electors. And as the January
Speaker 1: six hearings they continue. Key Republican senator says gun safety
Speaker 1: talks of hit bumps in the road. Let's take a
Speaker 1: deeper dive ahead of these stories. This morning, we're joined
Speaker 1: by Bloomberg government reporter Jack Fitzpatrick. Jack, thanks a lot,
Speaker 1: and let start with the first story. I guess I
Speaker 1: have to ask the question who owns inflation? Oh boy,
Speaker 1: that is a debate that is raging in Washington, and
Speaker 1: they may be spinning their wheels a little bit at
Speaker 1: A lot of the conversation about inflation on Capitol here
Speaker 1: and Hill, and when you hear from the president has
Speaker 1: really gone into mid term mode. It weighs on Democrats
Speaker 1: much more than Republicans, obviously, because Democrats are in control.
Speaker 1: As for the actual causes, you know, it's difficult for
Speaker 1: the president to make the argument that there's only so
Speaker 1: much he can do. He has put the weight on
Speaker 1: the Fed. He has mentioned that there are this is
Speaker 1: a global issue, but a lot of that is just
Speaker 1: sort of it's difficult for the president to to sweep
Speaker 1: away that and say well, other countries are experiencing it
Speaker 1: as well. And it's an issue that is weighing very
Speaker 1: heavily on Democrats heading towards the mid terms, because it's
Speaker 1: safe to say it's issue number one for voters heading
Speaker 1: into November. Yes, absolutely, inflation is clearly dominating the political
Speaker 1: conversation in the country right now. Uh. And you know,
Speaker 1: the idea of a recession is tied to that. I
Speaker 1: thought it was very interesting that a majority of Americans,
Speaker 1: according to a Yugov Economist poll, think that the US
Speaker 1: is either already in a recession or will be in
Speaker 1: the next twelve months. That's across a number of demographic groups. Uh.
Speaker 1: That that gets to independence. It's it's weighing on Democrats
Speaker 1: very heavily, and it's really an issue where inflation has
Speaker 1: helped turn into recession concerns. Five bucks a gallata Philip
Speaker 1: car early this morning. What's the President going to do
Speaker 1: about it? If he can do anything? Uh, you know
Speaker 1: he has mentioned, or rather the Press Secretary of the
Speaker 1: White House, Koreem Jean Pierre, just mentioned recently that the
Speaker 1: Defense Production Act is on the table to try to
Speaker 1: increase the refining capacity of of oil to increase the
Speaker 1: supply of gasoline. They haven't put out a specific plan.
Speaker 1: A lot of the legislative back and forth has has
Speaker 1: not really gone anywhere for a short term solution on
Speaker 1: gas prices. So that's another facet of the inflation conversation
Speaker 1: that has shifted away from anything that you'd call productive
Speaker 1: and more toward the campaign debate. But at least we
Speaker 1: now know that the Defense Production Act, even though there
Speaker 1: are not details, is something they're they're at least looking at.
Speaker 1: This is sort of an unfair question, but I think
Speaker 1: you can handle it. Do we have a cohesive energy
Speaker 1: policy here in the United States is not particularly no.
Speaker 1: There are debates, you know, within this debate over inflation,
Speaker 1: a lot of Republicans will point to shortcomings that they
Speaker 1: see in Democratic policy on pipelines, on leasing for oil production.
Speaker 1: Those are much longer term issues rather than today's inflation debate.
Speaker 1: But even if you if you get into the legislative
Speaker 1: conversation about broader energy proposals, uh, it's not as if
Speaker 1: they're moving forward on a carbon tax or something like
Speaker 1: that that's cohesive on climate change, And much of the
Speaker 1: conversation is, you know, can you can the federal government
Speaker 1: spend more on this program or that program to encourage
Speaker 1: research and development on cleaner energy, but it's not exactly
Speaker 1: a clearly authorized energy policy at the federal level. UH.
Speaker 1: The next story the well, the January six hearings continue
Speaker 1: on Capitol Hill. Give us the update. Yes, so they're
Speaker 1: gonna be meet today at one pm. This one focuses
Speaker 1: on the amount of pressure and how Donald Trump pressured
Speaker 1: Mike Pence to overturn the results of the election. So
Speaker 1: they're gonna have testimony from Greg Jacob, who is the
Speaker 1: council to Pence, Michael Luddig, who is a more informal
Speaker 1: legal advisor to Pence. We also understand there's going to
Speaker 1: be video testimony shown from Mark Short, who was Pence's
Speaker 1: chief of staff. On one hand, there will be an
Speaker 1: argument that that UH, the president at the time, UH
Speaker 1: inappropriately pressured Prince Pence to in many people's eyes, illegally
Speaker 1: overturned the election. That's the core argument that this panel
Speaker 1: is making. But also there may be some information on
Speaker 1: the danger that might have been presented to Pence and
Speaker 1: the idea that people were going to potentially harm him,
Speaker 1: and what the White House knew and what Pence himself
Speaker 1: knew about that at that time. So the Trump Pence
Speaker 1: relationship is getting this late today. All right, Jack, thanks
Speaker 1: very much. We appreciate it. Bloomberg Government reporter Jack Fitzpatrick.
Speaker 1: And of course you can read more about these stories
Speaker 1: on Bloomberg dot com or on the Bloomberg terminal. And
Speaker 1: also a reminder, you can follow all the latest on
Speaker 1: Bloomberg Radio in Washington's Bloomberg one at one oh five
Speaker 1: point seven FM HD two. Well after the rally that
Speaker 1: we saw yesterday after the Fed decision, it's risk off
Speaker 1: this morning. Down futures right now they are down five
Speaker 1: hundred seventy seven points, that's a decline of one point
Speaker 1: nine percent. SMPE many futures down to eighty seven points,
Speaker 1: that's a decline of two point three percent. At the
Speaker 1: N day futures right now three hundred and fifteen points, lower,
Speaker 1: decline of two points seven percent. This as a recession.
Speaker 1: Fears returned to the markets as far as Yale's gale
Speaker 1: tenure yield right now three forty four. That is a
Speaker 1: rise this morning fifteen basis points. As we see US
Speaker 1: fell off in treasuries continuing compare that to two year
Speaker 1: yield that is at three five that is up sixteen
Speaker 1: basis points this morning, and the vix Wall Streets fear
Speaker 1: gauge that is slightly elevated this morning. Thirty one nine
Speaker 1: and just ahead Bloomberg Savanllance with Tom Keane and Lisa
Speaker 1: Bramboits and John Farrell and for Nathan Hager. I'm John Tucker,
Speaker 1: and you've been listening the Boomberg Daybreak